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Results

CAC
$0
Cost per Customer
LTV
$0
Lifetime Value
Churn
0%
Monthly Rate
LTV:CAC
0
Target > 3.0
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About

In the subscription economy and digital business landscape, understanding unit economics is not merely analytical—it is survival. Metrics like CAC (Customer Acquisition Cost) and LTV (Lifetime Value) determine whether a business is scaling profitably or bleeding cash. Investors and founders rely on these ratios to assess the health of the revenue engine.

This calculator provides a comprehensive suite for deriving these key performance indicators instantly. Beyond simple arithmetic, it contextualizes your data by comparing it against standard industry benchmarks for B2B SaaS, E-commerce, and Agencies. Identifying a high churn rate or an unsustainable LTV:CAC ratio early allows for strategic pivots in pricing, retention, or acquisition channels.

saas business churn

Formulas

The relationship between the value of a customer and the cost to acquire them is the "Golden Ratio" of SaaS growth.

LTV = ARPUChurn

Where ARPU is Average Revenue Per User. Customer Acquisition Cost is defined as:

CAC = MarketingCosts + SalesCostsNewCustomers

Reference Data

MetricB2B SaaS BenchmarkE-Commerce BenchmarkAgency/Service Benchmark
LTV:CAC Ratio> 3:1> 2.5:1> 3:1
Monthly Churn Rate0.5% - 2%3% - 5%2% - 4%
CAC Payback Period6 - 12 MonthsImmediate - 3 Months1 - 3 Months
Gross Margin70% - 85%30% - 50%40% - 60%
Expansion Revenue10% - 30%N/A (Repeat Purchase)10% - 20%
Trial Conversion15% - 25%N/A20% - 40%
NPS Score+40+50+60
Annual Growth (Seed)100% - 300%50% - 100%30% - 50%

Frequently Asked Questions

The industry standard is 3:1. This means for every $1 you spend acquiring a customer, you should generate $3 in gross profit over their lifetime. A ratio of 1:1 implies you are merely breaking even, while 5:1 might suggest you are under-spending on growth.
Take the number of customers lost during a specific period (e.g., month) and divide it by the total number of customers at the START of that period. Do not include new customers acquired during the month in the denominator.
It determines your cash flow needs. If it takes 18 months to recover the cost of acquiring a customer, you need significant capital reserves to float that period. Ideally, B2B SaaS aims for <12 months.
No. Monthly Recurring Revenue (MRR) should strictly include recurring subscription fees. One-time setup fees, consulting charges, or hardware costs should be excluded to avoid inflating valuation metrics.